The Consumer Price Index (CPI) inflation for October is recorded at 6.21 per cent on year-on-year basis. Corresponding inflation rates for rural and urban are 6.68 per cent and 5.62 per cent, respectively, Ministry of Statistics and Programme Implementation (MoSPI) said on Tuesday.
Notably, this crossed the inflation target limit of the Reserve Bank of India (RBI).
Year-on-year inflation rate based on All India Consumer Food Price Index (CFPI) number is 10.87 per cent (Provisional) for the month of October, 2024. Corresponding inflation rate for rural and urban are 10.69 per and 11.09 per cent, respectively.
Data from the ministry said that the year-on-year Housing inflation rate for the month of October is 2.81 per cent.
While the corresponding inflation rate for the month of September, 2024 was 2.72 per cent. The housing index is compiled for urban sector only.
The All India Electricity index and inflation for the month of October are 162.5 and 5.45 per cent respectively. Corresponding index and inflation for the month of September was 162.4 and 5.39% respectively.
During the month of October, 2024 significant decline in inflation is observed in Pulses & products, Eggs, Sugar & confectionery and spices subgroup. High food inflation in October, 2024 is mainly due to increase in inflation of vegetables, fruits and oils and fats.
Speaking on the inflation number, Aditi Nayar, Chief Economist and Head of Research and Outreach at ICRA, said, “We expect the core inflation print to continue to inch up further in the remaining part of the fiscal, while averaging below the 4.0% mark during the year.”
“With mixed trends for various food items amidst a favourable base, ICRA expects the food and beverages inflation to ease to ~8.0-8.5% in November 2024 (+8.0% in November 2023) from 9.7% in October 2024 (+6.3% in October 2023). Overall, after peaking at 6.2% in October 2024, the headline inflation print is likely to soften to 5.5-5.7% in November 2024,” she added.
The MoSPI data also shared the Quick Estimates of Index of Industrial Production (IIP) growth rate for the month of September 2024 is 3.1% which was (-) 0.1% in the month of August 2024.
The growth rates of the three sectors, Mining, Manufacturing and Electricity for the month of September 2024 are 0.2%, 3.9% and 0.5% respectively, it said.
Within the manufacturing sector, top three positive contributors for the month of September 2024 are – “Manufacture of coke and refined petroleum products” (5.3%), “Manufacture of basic metals” (2.5%), and “Manufacture of electrical equipment” (18.7%).